Malta, 26 July 2017
- Revenue amounted to €14.1 (13.7) million for the second quarter of 2017, an increase of 3%
- Operating profit (EBIT) for the second quarter of 2017 was €0.3 (2.0) million, with a margin of 2% (14%)
- Following the win of the 888sport contract renewal, Kambi's revenue and EBIT have been affected by €1 million1 for the first six months of 2017. Despite the financial impact, this is in the long-term interest of Kambi's growth.
- Profit after Tax amounted to €0.1 (1.8) million for the second quarter of 2017
- Earnings per share for the second quarter of 2017 were €0.004 (0.060)
- Cash flow from operating and investing activities (excluding working capital) amounted to €-0.5 (0.1) million for the second quarter of 2017
1 €1 million effect comprising €0.4 million adjustment to Q1 2017 revenue and €0.6 million to Q2 2017
- Agreement signed with 888sport to extend the partnership with Kambi for the long-term. There is a €1 million effect on revenues for the first six months of 2017.
- Corredor Empresarial in Colombia has signed an exclusive deal for Kambi's premium Sportsbook, further strengthening Kambi's foothold in Latin America
- Solid 16% operator turnover growth year-on-year, despite tough comparisons
- EGR B2B award winner of 'Sports betting supplier 2017'
"I am pleased to report that Q2 was a successful trading period for Kambi. Not only has the day-to-day performance of the business remained strong, but Kambi has managed to further strengthen its foundations for future growth.
We are very pleased to have secured a multi-year extension with one of our key customers, 888sport. We believe the longer term benefit from securing 888sport for years to come, far outweighs the shorter term impact the re-negotiation has on our financial results. Together we have enjoyed a very successful partnership, with 888sport having seen a near 500% increase in sports betting revenues since switching to Kambi in 2013.
I am also delighted that Corredor Empresarial has chosen Kambi as its trusted partner for the launch of a Sportsbook in its home market of Colombia. We believe this deal will lead to significant business opportunities for both parties.
Kambi identified Corredor Empresarial as a key strategic partner in Colombia. With its vast retail reach of more than 25,000 outlets, as well as its new BetPlay online brand, we believe Corredor Empresarial has the potential to become the country's number one sports betting operator.
Together with Grupo Televisa in Mexico, Kambi has managed to secure two major players in the two largest regulated Latin American markets, which not only speaks to the strength and scalability of the Kambi Sportsbook, but also places us in a strong position to win further customers in the region.
These new contracts, together with the year-on-year turnover growth of 16% delivered by our operators - despite last year's corresponding quarter featuring the majority of the Euro 2016 tournament - underline the quality, stability and relevance our service offers our customers.
The global sports betting market has a total value of more than €50bn in GGR2 and a rapid growth rate with many countries moving towards regulation. This makes us confident we will be able to increase our growth and market share further with both new and existing customers.
Finally, I'm pleased to say Kambi won 'Sports betting supplier' of the year at last month's prestigious EGR B2B awards in London. This achievement is a reflection of all the hard work and dedication shown by everyone at Kambi and provides further evidence of our success at creating the best sports betting experience", says Kristian Nylén, CEO of Kambi.
2 Source: H2GC
You are invited to participate in a report presentation at 10:45 CET with the CEO Kristian Nylén and CFO David Kenyon. The presentation will be held in English via a telephone conference and can also be accessed via an audiocast using the link below.
Questions can be asked on the telephone conference or sent via the audiocast link. Please see details in the link below:
Numbers for participation in the telephone conference:
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Kambi Group plc is a B2B supplier of managed sports betting services on a proprietary software platform, providing premium turnkey sports betting services to gaming operators. Kambi's product encompasses a broad offering from front end through to odds compiling and risk management. The company's current coverage includes more than 185,000 live betting events and 300,000 pre-match events per year covering 65 different sports from all over the world. Kambi utilises a best of breed security approach, with guiding principles from ISO 27001. Kambi is eCOGRA certified. Kambi Group plc is listed on First North at Nasdaq Stockholm under the symbol "KAMBI". Kambi's Certified Advisor is Redeye AB.
The information in this report is such that Kambi Group plc is required to disclose under the EU Directive of Market Abuse Regulation, the Swedish Securities Market Act and rules for companies listed on the First North at Nasdaq Stockholm.